Analyst Says EA Invested $500 Million into Star Wars: The Old Republic
MMOs are expensive, man. That’s according to Cowen & Co analyst Doug Creutz, who recently told MarketWatch that while Electronic Arts and BioWare probably did everything they could to keep costs down and hedge their bets over Star Wars: The Old Republic‘s success, the enterprise of making a massively multiplayer online game is really, really costly.
That’s why Creutz figures EA spent around $500 million to put the game together.
That’s quite a bit more than was estimated last year by Wedbush Securities analyst Michael Pachter, who pegged EA’s investment then at $80 million.
Already, EA has said that about 1 million players have hooked up with SWTOR, and by the end of the week, they should have to start paying their subscription fees. If we assume that million paid $60 each for their copies of SWTOR and go on to play for another month, EA and BioWare will have earned $75 million of their money back. They’ll need subscriptions for a million players for another 28 months — better than two years — to recoup all those expenses.
Somehow, that half-billion figure seems a little dubious to me.